At the end of the week, with Brexit looming, the cryptocurrency markets could face some uncertainty.
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The market data is provided by the HitBTC exchange.
Bitcoin (BTC) has proven to be in high demand among citizens of smaller nations like Venezuela, whose economic conditions have been adversely affecting their fiat currencies.
Now, cryptocurrencies will face another test with the impending Brexit deal. If the United Kingdom is forced to leave the European Union without a deal, experts believe that the pound will be hit hard, and might lose up to a quarter of its value.
With such uncertainty, will the market participants turn towards cryptocurrencies as an alternative source of investment or stick to the classical investment vehicles? We believe that digital currencies will make their presence felt because they are likely at the end of their year-long bear market. According to Binance chief executive Changpeng Zhao, their new Jersey-based trading platform has witnessed a huge demand.
CNBC contributor Brian Kelly expects cryptocurrencies to do well in 2019. Geopolitical tension in the world can boost the demand for digital currencies as the investors look to hedge their positions. However, Kelly doesn’t anticipate an approval for Bitcoin ETF this year.
Binance was the top performer among the major coins. The news of the launch of Binance Jersey, a fiat-to-crypto exchange for U.K, and European customers, was cheered by the investors. The company plans to capitalize on the uncertainty regarding Brexit and wants to offer the people an opportunity to diversify into cryptocurrencies. Binance also completed its 6th quarterly BNB token burn, roughly equivalent to $9.4 million. So, will its outperformance continue? Let’s find out.
The BNB/USD pair is attempting to breakout of the resistance line of the descending channel. For the past four weeks, the bulls have defended the first support at $5.46666. Therefore, we anticipate another attempt to breakout of the channel within the next couple of weeks.
A breakout of the channel will start a new uptrend that can carry the virtual currency to $15, with a minor resistance at $12. The traders can buy on a close (UTC time frame) above the channel and keep a stop loss below $5.
Contrary to our opinion, if the bulls fail to breakout of the channel, the bears will try to sink the digital currency below $5.
Cardano developer and CEO of IOHK Charles Hoskinson is excited about the forthcoming Project Shelly update. Cardano wallet “Deadalus” can also prove to be a major event, as it aims to be the most secure crypto wallet with a series of inbuilt protections. While some are confident about the prospects of the cryptocurrency, the critics feel that the developments are moving too slowly.
After an extended downtrend, the ADA/USD pair has been trading inside the range $0.062424-$0.027237 for the past nine weeks. There was a similar attempt to bottom out previously (marked as ellipse on the chart) that resulted in a breakdown. That consolidation had also lasted for nine weeks before breaking down of it.
If the bears breakdown of the current range, the downtrend will resume. However, if the bulls scale the overhead resistance of $0.062424, we can expect the start of a new uptrend that can reach $0.094256 and above it to $0.2.
As the upside potential is high, traders can wait for a close (UTC time frame) above the range to initiate a long position.
In the new year, IOTA has announced a couple of collaborations that can help it come on top. Though it has not run away, it has managed to close in the green in the past seven days. Can it move up from here and crack into the top 10? Let’s see.
The IOTA/USD pair is currently trading inside a range. After failing to breakout of $0.4037 for four weeks, the bears pushed prices back in the week before. However, lower levels are attracting buying as the bulls try to stage a recovery from close to $0.272 levels.
If the virtual currency rises from the current levels, the bulls will again attempt to breakout from $0.4037. If successful, a rally to $0.6, followed by a move to the next overhead resistance of $0.8152, is probable.
However, if the bears fail to force a turnaround at the current levels, a drop to $0.2051 is likely. If this support breaks, a retest of the critical support of $0.1427 will be on the cards. The downtrend will resume if this level gives way.
NEO Co-Founder Erik Zhang confesses that he doesn’t watch the daily price action of the virtual currency. He is more concerned with its development. According to him, Ethereum might overtake Bitcoin in the future, and Ethereum itself will face competition from cryptocurrencies such as NEO. Can NEO reclaim its footing among the top 10 cryptocurrencies? Let’s find out.
The NEO/USD pair has been trading inside a tight range for the past eight weeks. The attempt by the bulls to scale the range failed in the week before. However, the bears could not push the prices back to the bottom of the range: this shows demand for the digital currency close to $7 level.
We expect the bulls to again attempt to break out of the range. If successful, a rally to $16, followed by a move to $20 is probable.
Contrary to our expectations, if the bears plunge the virtual currency back below the range, the downtrend will resume. As the previous consolidations had resolved to the downside, we suggest traders wait for a close (UTC time frame) above $10 before initiating any long positions.
Tron has slowly but surely cemented its place among the top 10 cryptocurrencies. The markets have cheered the plans to launch BTT token, which will run on the Tron and BitTorrent networks. Its founder, Justin Sun, wants people to think of “Tron” whenever they think of any cryptocurrency.
The company also announced a tie up with ABCC cryptocurrency exchange to list tokens based on Tron’s TRC10 technical standard. However, many developers came out against Tron’s Accelerator contest, as the announcement of winners was delayed and the prize money was slashed at the last moment. What is in store for this cryptocurrency? Let’s find out.
The TRX/USD pair is range bound between $0.0183-$0.02815521. The breakout of this range in the week before could not sustain, and the price fell back into the range. Last week, the bulls again attempted to breakout of the range but found selling at the resistance line of the range at $0.02815521.
If the bulls succeed in pushing the price above the range, a new uptrend is likely. The first target on the upside is $0.04. The traders can buy on a close above the range and keep a stop loss just below $0.021.
If, however, the bears defend the top of the range, a few more weeks of range bound action is likely to continue. The virtual currency will turn negative if the price breaks down of the critical support at $0.0183.
Source: , CoinTelegraph
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